While we didn’t attend the NAED Western Regional which just concluded in Palm Springs, we’ve spoken to a number of distributors and manufacturers to get their take on the proceedings.
Based upon the feedback we received:
- The economy was the story. After looking at December and year to date sales performance, manufacturers and distributors were singing the blues. While no one has a crystal ball, many are following some economists who feel we’ll be in a recession for another couple of years. One of these economists is Dr. Jeff Dietrich, Ecotrends, who gave a presentation to the National Glass Association and feels that the current economic environment will extend into 2010“ (note: this is others’ opinions, not necessarily ours!)
- There is much pain in the channel and most distributors have reduced their workforce, with manufacturers being even more aggressive.
- In light of the economic challenges, it was no surprise that overall attendance was down about 15% from the prior year. Couple the economy with room rates of $275/night and a manufacturer registration fee of $769 (early registration) and it is no surprise that attendance was down. Hopefully the SouthCentral will have better attendance as it is a less expensive meetings to attend (room rate of $237/night and less expensive airfares as well as closer for the overall regional attendees).
- Hubbell and Omni Cable did not hold their receptions and word is that they have cancelled them for the remainder of the year (and do you really think they’ll come back?).
- Word is that GE and Cooper have already cancelled their receptions for the NAED Leadership Conference (Annual Meeting) and we saw that NAED has extended their date to solicit sponsorships.
- A few distributors reported that manufacturers were going to roll-back prices. These are manufacturers who had typically had multiple price increases last year. Steel and die cast manufacturers were specifically mentioned. Credits will be issued so that marketplace pricing is not affected. Could this be a precursor to net pricing for more people? What happens when commodity prices increase (eventually)? Continual price changes? The roll-back could offer some price relief (and/or profit relief) to some distributors (although then consider the cost of inventory procured at higher prices).
- A major development that was mentioned by a number of manufacturers is conversation about the possibility of a true industry annual meeting. It was discussed that NAED, A-D and IMARK have had some discussions, albeit individually) about consolidating the three annual meetings into one “mega meeting”.
NAED would still hold the three regional meetings and the marketing groups would aggregate their annual meetings into the NAED Leadership Conference. Many details need to be worked out as there are logistics to consider, hotel contractual arrangements, dates, meeting formats, registration processes, financial responsibility, location, etc… A number of major manufacturers strongly support this idea as it would reduce some of their travel expenses and time out of office and this could be a major “win” for NAED by gathering the industry together.
It probably would take a couple of years to get the logistics and hotels in line, but at least the conversation has started on reducing the number of meetings in the industry. Worst case, getting all of the parties in the same room could generate some other ideas.
When the industry gets together you can always be assured that there will be some interesting conversation. What are you thoughts regarding the economic prognostication? What about merging annual meetings (if you want it to happen, talk to your NAED and marketing group
leaders!)? And which manufacturers are you seeing rollbacks from?
13 Comments
wasn’t at the meeting but this tracks with what we’re seeing … price cuts are coming.
Looks like NAED is looking for a reason to exist (and probably retain revenue since they’ll still charge for registration fees which I don’t pay to attend my IMARK meeting) while reducing marketing group networking benefit. Sounds like a Naber idea
Maybe NAED needs to reduce the # of its meetings. Split the country in half and get rid of national and a region
I agree that we will see rollbacks in pricing, just hope they’re handled properly. If we see them in the form of random discounting and lower SPA levels, it is going to be rough on the ED and inflict pain. Hope you’re right that there will be a move to get into stock pricing levels closer to reality. When 80% of your sales in a line have a SPA attached, it is time for everyone to fess up and get the base price right.
NAED is going to have to figure out how to move beyond being in the party business. Meetings with half-assed feel good speakers and “Aint we wonderful” themes are not going to advance the channel and make it stronger. Who would miss most NAED meetings if they didnt happen anyway? A few less boring speakers, dinners and rounds of golf… The marketing group meetings are valuable because they FOCUS on business (imagine that). Tom Naber is a good man, but NAED’s board just doesn’t get it.
Unfortunately, NAED thinks the manufacturers have deep pockets and will pick up the bill for the rest. We are cutting back attendance until NAED becomes more equitable and a more valuable tool.
NAED’s BOD is just a bunch of Guys/Gals who got to stand on the stage and get their ego blown up.
15% decrease in NAED’s attendance @ Western is probably the tip of the iceberg in declining attendance for future events.
No more cocktail functions by manufacturers, because NAED just doesn’t provide any real value.
Let’s see Naber blew up IDEA.
Under his leadership he still promotes resort meetings….hey wake up the party is over.
What is NAED’s role?
was at western. attendance weak and networking even weaker. without the hubbell event the meeting lost much networking opportunity. unless naed does something to create networking on thursday, little ability to meet with people unless set up meetings during naed sessions (which is supposed to be taboo)
and the friday night event is a waste of time. next time i’m going home early
I am always surprised at the dynamics of association meetings. Many people come to the meeting with amost no preparation, no pre-set appointments, no agenda for making new contacts or renewing old contacts. The come, hang out with the same old friends, drink, sleep late and then complain.
Trust me, under the radar, there are some guys who have files and notes in their briefcase. They have plans and they have pre-conceived agendas. They know who they are going to “run into” at the cocktail hour, and what they are going to say.
Here’s the deal, it’s your choice as to which one you are going to be. The carnivor or the eaten.
Friday nite is a waste of time and money!
The buying groups events provide true value and a real opportunity to build relationship value. The NAED good ole boy event is meaningless in todays world. As a mfg, we have to choose where we are going to put our dollars and I can tell you that without a doubt, we will not be going to NAED events any longer, but will attend Imark/EDN, Equity and AD.
NAED has done a poor job of keeping up with where the market is going and where the needs ares.
frustrated mfg!
Right on brother about buying groups offering real value.
Finally got wise-Manufacturer
I’ve always wondered why it took so many NAED Staffers for a meeting.
Nice people and they are only following orders…buttttttt
It cost money.
As a manufacturer it is an expense vs. value thing and expense is something we are trying to cut out.
We get way more bang for the buck at a buying group.
NAED missed the boat years ago. It was obvious that the marketing groups would consolidate in some fashion and that they would command more attention. So, instead of accepting that reality and reinventing itself to concentrate on a different mission, it tried to fight the trend.
As long as the economy is growing, “fringe” expenses can persist. But when things get really tight, they are “on the bubble” and get cut. If it stays tight for a long time, they perish entirely.
NAED needs to wake up to a new mission that focuses on industry productivity for all channel participants. That will entail a completely different set of personnel with a completely different set of skills.
Unfortunately, it appears that NAED leadership has created more rifts than bridges and it will be a while before such efforts can get started again.
By that time, it may not exist as NAED any longer.
There are few reasons to go to NAED meetings any more, and there will be less and less in the future.
Find a new mission, NAED. Stop trying to do what you WANT to do, and do what is NEEDED.
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